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The Fandango at Home Forums are designed to help viewers get the most out of their Fandango at Home experience. Here, Fandango at Home customers may post information, questions, ideas, etc. on the subject of Fandango at Home and Fandango at Home -related issues (home theater, entertainment, etc). Although the primary purpose of these forums is to help Fandango at Home customers with questions and/or problems with their Fandango at Home service, there are also off-topic areas available within the Fandango at Home Forums for users to chat with like-minded people, subject to the limitations below.

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Disney suing Redbox for selling digital codes

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    #1

    Disney suing Redbox for selling digital codes

    For those of you who haven't heard, there is a major court case brewing that could have a significant impact on digital copies [UV, MA] going forward. Redbox began selling the digital codes of Disney movies in the last quarter of 2017. Disney has now filed a lawsuit against Redbox for copyright infringement, saying that Redbox was never legally allowed to sell digital codes.

    Redbox is claiming that the digital codes fall under the First-Sale Doctrine, which basically states that once you buy something, you can legally resell the item(s). They have been buying BluRay+DVD combos for years now, and then turn around and sell/rent the Blu Ray and DVD separately, all thanks for the First-Sale Doctrine. So, when they buy BluRay+DVD+Digital, does that mean they now legally own 3 copies of the movie and can do what they please? It's also important to note that Redbox is selling you the physical piece of paper that contains the digital code; they will not give you the code in any other way. Is this the same as selling an instruction booklet to a video game?

    Disney is claiming that they have 'NOT FOR RESALE' listed on the majority of digital codes. However, if they did this with BluRay and/or DVD discs, the First-Sale Doctine overrules it, so this statement could prove to be meaningless.

    As of right now, you can still buy digital codes through Redbox. It's also important to note that Redbox is not the only company doing this. Up until early 2017, Family Video was selling digital codes, but suddenly stopped. Were they threatened legal action? We may never know, but there are currently many other websites selling digital codes. Also, ebay used to suspend user accounts for selling digital codes, but now it appears they aren't enforcing that rule.

    The result of this case could have some major impacts, especially if Disney loses. Would digital copies stop appearing with movies? Would movie + digital prices suddenly double? It's all speculation at this point.

    What do you all think?
    Tags: None
    #2
    Interesting! It's very possible that Disney could win especially with the current administration which is all about big business and not so much about the ordinary Joe like you and me.

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      #3
      codes is where about 80% of my Vudu collection now days comes from so I hope not...

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        #4
        Redbox is at minimum a Billion dollar company, so you can expect that they have a top notch legal department. The fact that Redbox started selling the digital codes, and have yet to stop even though they're being sued, tells me that their legal team has carefully thought this through and believe that they have every right to re-sell the codes. We could be in for quite a long battle between these two.

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          #5
          Originally posted by lujan View Post
          Interesting! It's very possible that Disney could win especially with the current administration which is all about big business and not so much about the ordinary Joe like you and me.

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          The administration hasn't weighed on on this and most likely wont because this case is between two private parties, and will be decided in court based on the court's interpretation of the law. If Congress passes a new law that covers this it would have to be signed by POTUS.

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            #6
            It will be interesting to see how this turns out. If you think about it Disney's argument is that codes can't be transferred or sold to anyone for any reason. So let's say you decide to buy a Blu-ray with a digital copy, you cant give the code to a family member or friend and keep the discs. Or vice versa.

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              #7
              Originally posted by Kotor29 View Post
              It will be interesting to see how this turns out. If you think about it Disney's argument is that codes can't be transferred or sold to anyone for any reason. So let's say you decide to buy a Blu-ray with a digital copy, you cant give the code to a family member or friend and keep the discs. Or vice versa.
              This is where things get really confusing for the consumer. If you buy a BluRay+DVD combo, you can give away the DVD to a family member and keep the BluRay, all thanks to the First-Sale Doctrine. Even if Disney printed 'NOT FOR RESALE' on the DVD you just gave away, you can still legally do so. Why would a digital copy of the movie be any different?

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                #8
                Originally posted by Random View Post

                This is where things get really confusing for the consumer. If you buy a BluRay+DVD combo, you can give away the DVD to a family member and keep the BluRay, all thanks to the First-Sale Doctrine. Even if Disney printed 'NOT FOR RESALE' on the DVD you just gave away, you can still legally do so. Why would a digital copy of the movie be any different?
                Exactly! I feel that I should be able to give away or sell the codes the same way you can give away or sell the discs.

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                  #9
                  UPDATE! I am not sure if linking to other websites is allowed on these forums or not, but a google search will show you that Disney's lawsuit has now backfired. The judge is siding with Redbox that the digital codes are allowed to be resold since Redbox legally purchased the disc packages which included the digital codes. Not only is the judge siding with Redbox, but the judge is actually thinking that Disney may have violated laws by trying to block customers from reselling legally purchased goods.

                  This could potentially be the end of Disc + Digital sells [for Disney at least].

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                    #10
                    I guess we can enjoy the Disc + Digital sales as long as we can if they may end up being sold separately in the future?

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